By Harsh Chauhan
Publication Date: 2026-10-28 13:15:00
Nvidia and Micron Technology have benefited big time from the artificial intelligence (AI) infrastructure boom, driven by their mission-critical chips that play a central role in handling training and inference workloads in data centers.
Both companies have been growing at a solid pace and, importantly, can sustain their healthy growth momentum in 2027. However, there is another AI stock that I think could outperform Nvidia and Micron in 2027.
Western Digital (WDC +6.95%) is an important player in the AI infrastructure ecosystem, manufacturing data storage devices that are deployed by hyperscalers and enterprises. Shares of the company have jumped by 103% in 2026, though the past few months have been quite rough for shareholders.
Specifically, Western Digital has dropped 49% from the 52-week high it reached on June 18. However, I think this is an opportunity for savvy investors to add a top growth stock to their portfolios. Let’s look at the reasons why Western Digital can step on the gas and become a big winner in 2027.
Image source: Getty Images.
AI-driven storage demand will help Western Digital sustain its terrific momentum
Western Digital released fiscal 2027 first-quarter results (for the three months ended Oct. 2) on Oct. 22. The company’s revenue jumped by 55% from the year-ago period to $4.38 billion. Even better, its non-GAAP gross margin increased to 58.1% from 43.9% in the year-ago quarter. This impressive expansion in Western Digital’s margins led to a 161%…